(Ph: 9885125025/26 www.mastermindsindia.com } CA - CPT — DECEMBER 2017 QUESTION PAPER (BASED ON MEMORY) 1* Session SUM era eros ‘LIOURNAL 1. Prepaid Insurance account is a, a) Nominal account —_b) Real account ¢] Representative Personal account d) Artificial Personal account 2. A trader purchased goods for Rs.4,000 at a trade discount of 5%, As he paid the amount immediately, a cash discount of Rs.100 was also allowed. In this case, Purchases A/c is debited by a) Rs.4,000 ) Rs.3,700 B)Rs.3,800 d) Rs.3,900 3. Some of the goods purchased for trading are used for the construction of business premises. The account to be credited is a) Business premises A/c b) Purchases A/c ) Sales A/c d) None of the above 4. Cash Book is a type of but treated as a of accounts, a] Subsidiary book, principal book b) Principal book, subsidiary book €) Subsidiary book, subsidiary book d) Principal book, principal book 5. Starting with the Debit balance as per Cash Book, cheques deposited but not cleared will be a) Added in B.8.S 6) Ignored in B.RS ‘b) Deducted in BRS d) None of the above ‘FINAL ACCOUNTS -1 6. Increase in the value of Assets Rs.1,00,000 Decrease in the value of Liabilities Rs.50,000. Then owner's equity will al Increase by Rs.1,50,000 b) Increase by Rs.50,000 ¢) Decrease by Rs.1,50,000 d) Decrease by Rs.50,000 Marks: 100 Marks Time: 2 hrs. 7. Net profit before charging manager's commission is Rs.49,500 and the manager is to be allowed a commission of 10% on the profit after charging such commission. Commission amount will be a) Rs.5,000 ©) Rs.4,500 b) Rs.4,950 d) None 8. Goods costing Rs.8,000 were destroyed by fire. Insurance company accepted a claim of Rs5,000. The amount to be credited to Purchases / Trading A/c will be__ a) Rs.5,000 b) Rs.8,000 ©) Rs.3,000 d) Rs.13,000 9. Capital introduced at the beginning by Ram <35:13,000. Further capital introduced during the < Year Rs.3,000. Drawings Rs.4,000 and closing capital is Rs.20,000. The amount of net profit will be: ‘a Rs.8,000 ) Rs.4,000 ) Rs.7000 d) Rs.11,000 10. Rent paid on 1* October, 2016 for the year to 30" September, 2017 was Rs.1,50,000 and rent paid on 1* October, 2017 for the year to 30" September, 2018 was Rs.1,80,000. Rent paid, as shown in the Profit and Loss account for the year ended 31% December 2017, would be: a) Rs.1,57,500 €) Rs.1,80,000 ) Rs.1,50,000 d) Rs.1,65,000 9. BILLS OF EXCHANGE & PROMISSORY NOTES 11, The purpose of accommodation bill is a) To finance actual purchase or sale of goods b) To facilitate trade transmission ©) When both parties are in need of funds d) None of the above 12. On 15.02.17 X draws a bill on Y for 30 days. ¥ accepted the bill on 18.02.17. The maturity date of the bill wll be a) 18.03.17 ©) 23.03.17 b) 21.03.17 d) None of the above CA - CPT_Dec-2017 Question Paper _Session 1. 2No.1 for CAICWA & MECICEC MASTER MINDS 413. For mutual accommodation of Mita and Rita, Rita accepted a bill drawn on her by Mita for Rs.7,500. The said bill is discounted by Mita at Rs.7,400 and remitted 1/3rd of the proceeds to Rita. To honour the bill, the amount to be paid by Mita to Rita on the due date will be aa) Rs.7,500 b) Rs.4,500 c) Rs.5,000 d) None Ram draws a bill on Rahim for Rs.15,000. The bill was discounted with Bank at Rs.14,900. On the due date the bill was dishonoured and the noting charges amounted to Rs.50. What is the amount to be debited by Bank to Ram's account? a) Rs.14,000 b) Rs.14,900 ) Rs.15,000 d) Rs.15,050 G draws a bill on R. G endorses the bill to S. On the due date the bill is dishonoured. On dishonour, which account is credited in the books of G? 2) Bills Receivable A/c )RA/e 4. bISA/e 4d) Bills Payable A/c 10. CONSIGNMENT 600 boxes of goods are consigned at a cost of s.250 each. Consignor’s expenses amounted to Rs.3,000. 1/6" of the boxes are still in transit, 3/5® of the boxes received by consignee are sold at Rs.300 each. The valde of. goods in transit will be S 2) Rs.25,500 €) Rs.30,000 16. b) Rs.25,000 a) Rs.40,000 17. MN of Mumbai sent out goods costing Rs.4,00,000 to QR of Delhi on consignment basis. Consignee is paid an ordinary commission of 2% and a delcredere commission of 3% on sales. The entire goods were sold by consignee for Rs.5,00,000. However, the consignee could recover s.4,92,000 from the trade receivables. In the books of consignee, the commission to be transferred to Profit & Loss A/c will be__ a) Rs.25,000 ‘b) Rs.17,000 «) Rs.20,000 4) Rs.33,000 Mr. Mehta sent 1,000 shirts costing Rs.400 each to Mr. Kehta on consignment basis. ‘Mehta paid Rs.20,000 as expenses. Kehta sold 900 shirts at Rs.500 each. His selling expenses amounted to Rs.15,000. Find the value of closing inventory. CA - CPT_Dec-2017 Question Paper _Session 1. 18. a) Rs.42,000 bb) Rs.43,500 ¢) Rs.40,000 d) Rs.45,000 ‘TLLJOINT VENTURES 19.P & Q entered into a joint venture. P purchased 5,000 units of goods at Rs.30 each. Q sold Rs.4,800 units at Rs.50 each. The remaining goods were taken over by Q at a value of Rs.5,000. P is allowed a commission of 2% on purchases and Q is allowed a commission of 1% on sales. Find the share of Q in the profit of joint venture. a) Rs.46,300 1b) Rs.44,800 ) Rs.46,000 d) Rs.45,000 . Mukesh and Vimal entered into a Joint Venture. Mukesh purchased goods for Rs.36,000 and paid Rs.3,900 as expenses. \Vimal purchased goods for Rs.17,000 and paid Rs.3,000 as expenses. Entire goods were sold for Rs.65,000. They share profits and losses in the ratio of 2:1. The final remittance to Mulésh will be 2) Rs:43,300 'b) Rs.40,000 ‘€hR5.50,000 d) Rs.65,000 12. DEPRECIATION ACCOUNTING |. Which of the following expenses is not Included in the acquisition cost of a plant and equipment? a) Cost of site preparation b) Delivery and handling charges ¢) Installation costs, ) Fire Insurance premium 22. ‘A machinery was purchased for Rs.6,00,000 on 1.04.2012 and paid Rs.30,000 on its installation. It is estimated that the useful life of the machinery is 10 years and its scrap value is Rs.20,000, The amount of depreciation to be charged for the year ending 31.03.2017 will be a) Rs.61,000 b) Rs.62,000 ) Rs.60,000 d) Rs.63,000 The book value of a machinery on 1.04.16 was Rs.70,000, Depreciation is charged at 10% pa. under W.D.V Method on 31* March every year. ‘The machine was sold for Rs.60,000 on 1.08.17. Calculate the Profit / Loss on sale of machinery a) Profit Rs.3,000 b) Loss Rs,3,000 ©) Profit Rs.900 i) Loss Rs.900(Ph: 9885125025/26 www.mastermindsindia.com 24, The objectives of providing depreciation on an asset are a) To ascertain the true Profit / Loss of the firm b) To provide funds for the replacement of fixed asset €)To show the true financial position in the Balance Sheet ) All of the above 25, A machine is purchased for Rs.3,00,000. Its estimated working life is 28,000 hours, the Scrap value is Rs.20,000. Anticipated pattern of working hours are as follows: Year Hours 1-3 3,000 4-6 2,600 7=10 2,800 Depreciation for the 8" year is ‘al Rs.28,000 b) Rs.19,286 «) Rs.30,000 4) Rs.26,000 18. RECTIFICATION OF ERRORS: 26. A sales return of Rs.2,000 has been wrongly posted to the credit of Purchase Returns: account, but has been correctly posted to the customer’s account. The effect on the trial” balance will be__ a) Debit total increases by Rs.4,000 'b) Credit total increases by Rs.4,000 ¢) Credit total increases by Rs.2,000. d) Debit total increases by Rs.2,000. 27. While finalizing the current year’s profit, the company realized that there was an error in the valuation of closing inventory of the previous year. In the previous year, closing inventory was valued more by Rs.50,000. As a result. a) Previous year’s profit is overstated and current year’s profit is also overstated b) Previous year’s profit is understated and current year’s profit is overstated €)Previous year’s profit is understated and current year's profit is also understated d)Previous year’s profit is overstated and current year’s profit is understated 28, An amount of Rs.500 received from a customer has been debited to his account. This error is classified as a) Error of principle b) Error of omission LEtror of commission d) Compensating error CA - CPT_Dec-2017 Question Paper _Session 1. 14. SALE OF GOODS ON APPROVAL (OR) TURN BASIS 29. Under sales on return or approval basis, the ‘ownership of goods is passed only a) When the retailer gives his approval b) If the goods are not returned within specified period. 1 Both (a) & (b) 4) None of the above ‘Goods were sent to a customer on Sale or Return basis at cost +30%, The invoice price is Rs.6,500. At the end of the year market value of the goods ls 5% less than the cost. Closing inventory is valued at a) Rs.5,000 1b) Rs.4,750 ) Rs.4,800 d) Rs.6,170 ‘15. INVENTORIES 31. A trader has an opening inventory of Rs.70,000 on_1.1.2016, which consists of a slow moving item; costing Rs.10,000 and was written off by 812,000, This item was sold for Rs.9,000 during \the year. Barring this transaction, the gross profit on sales for the year 2016-17 remained at 20%.The sales and purchases during the year amounted to R:s.5,09,000 & Rs.3,78,000 respectively. Find the value of closing inventory, ‘on 31.03.2017, a) Rs.44,000 b) Rs.38,000 J Rs.40,000 d) Rs.42,000 During a year the sales and purchases of a firm amounted to Rs.4,00,000 and Rs.4,00,000 respectively. Opening inventory was Nil. Closing inventory at selling price was Rs.1,00,000. Find out the cost of closing inventory using Adjusted Selling Price Method. a) Rs.80,000 b) Rs.1,00,000 ©) Rs.1,50,000 d) Rs.1,40,000 33, E Ltd, a dealer in second-hand cars has the following five vehicles of different models and makes in their inventory at the end of the financial year 2009-2010. Car Cost ‘NRV (Rs) (Rs) Fiat 90,000 95,000 Ambassador 1,15,000 —1,55,000 Maruti Esteem 2,75,000 — 2,65,000 Maruti 800, 1,20,000 —1,25,000 The value of inventory included in the balance sheet of the company as on March 31, 2010 was: a) Rs.7,62,500 b) Rs.7,70,000 ©) Rs.5,90,000 ) Rs.8,70,000